2008 Tax Rebate For Social Security Recipients

Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!

I have been getting a lot of questions from people asking if they will receive rebates if they are retired and receiving Social Security Benefits. The answer is yes. as long as the following items are true:

1. Individuals or families must have at least $3,000 in qualifying income, which can be income from or in combination with Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and earned income
2. People must have valid Social Security Numbers.
3. People cannot be claimed as dependents or eligible to be claimed as dependents on another’s tax return.
4. People must file a 2007 tax form, i.e. Form 1040A.

If you have already filed a 2007 tax returns showing $3000 or greater in income then you are all set and will receive the rebate starting in May according to the recently posted Rebate Payout Schedule.

If you have already filed a 2007 return but did not include your Social Security benefits as income, you will need to file an amended return using the Form 1040X to qualify for the rebate.

If you are receiving Social Security but don’t usually file, check out this Resoruce Guide from the IRS on the easiest way for you to file to receive your rebate.

And remember, the quickest way to get your rebate will be to file that 2007 tax return with direct deposit, otherwise you will get a paper check paid out sometime between May and July based on your SSN number.

2008 Tax Rebate Stimulus Plan Payout Schedule Posted

Update: Haven’t received your rebate yet? Use the Rebate Status Tool to find our when it is coming.

The IRS has posted the 2008 Tax Rebate Stimulus Plan Payout Schedule.

The date you receive your payment will depend on 2 things:

• The last 2 digits of your Social Security Number
• If you will receive it by direct deposit or by check

Payments for those receiving the rebate through direct deposit will start on May 2nd and be completed by May 16th. Payments that will be received by check will begin May 16th and be completed by July 11th.

If you elected direct deposit when you filed your 2007 tax return, you will receive your rebate through direct deposit as well. This will be the quickest way for you to receive the rebate. Especially for those whose last 2 digits of their SSN are closer to 100. Unforturnetly if you have all ready filed your 2007 taxes and did not elect direct deposit, there is no way to stop the rebate from coming as a check.

According to the IRS, “People who file a return after April 15 will receive their economic stimulus payment, but probably about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year”

So for all you late filers, don’t forget that October 15th is a hard date you must file by to receive the 2008 tax rebate. This is free money, so don’t pass it up. If you are still unclear how much rebate you will be getting, try out the IRS.com Tax Rebate Calculator

And don’t forget that Uncle Sam is expecting you to blow all this tax rebate money on useless items to jump-start the economy! So be smart with this money considering the current economic slowdown that is happening.

2008 stimulus rebate schedule

2008 Retirement Contribution Limits

As we kick off 2008 now is a good time to make sure you are maxing out your 401k and ROTH IRA (if eligible). Remember that a 401k and ROTH might be the only thing you will have when you retire considering the current state of Social Security. So start maxing out today since the earlier you do it the greater it will grow before you need to use it!

Here are the contribution limits for 2008 for each retirement plan (401k, ROTH, 403b, and Simple IRA). I also included the 2007 limits as a comparison:

Note that for a ROTH IRA there are certain income limits that start to phase out how much you can contribute. If you are within the phase out range you can only make a partial contribution. If you are above that range then you are not eligible to make a contribution to a ROTH for that year. When you file your taxes it will tell you how much you can contribute based on your adjusted gross income (AGI). Personally, I usually wait to contribute to my ROTH the day before I file my taxes to make sure I haven’t over contributed based on my AGI.

Also don’t forget that you can still contribute to your ROTH IRA for 2007. Just make sure you do so prior to filing your 2007 taxes.

Free Link Directory

2008 Tax Rebate Stimulus Plan Payout Update

Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!

The IRS has mailed out a Stimulus Payment Notice to everyone. You should be receiving yours shortly. I have provided mine here if you have not gotten yours yet. (click on image for larger pictures. You may need to save them to your PC as IE doesn’t render the images very well)

 

This letter is basically reminding you to file a 2007 tax return, even if you haven’t needed to in the past, to be able to be eligible for the tax rebate payout. On the front of the mailer it provides a quick description of what your rebate will be based on current income levels. This doesn’t cover all situations however, so be sure to visit the 2008 Tax Stimulus Rebate FAQ for more info.

Unfortunately the note does not give an update to the tax rebate payout schedule. From what I hear it is coming soon, but the IRS is not ready to release it yet. Keep checking back and I will provide the payout schedule as soon as I have it.

2008 Tax Rebate Stimulus Plan Payout Update

Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!

I have been asked by a bunch of readers what the stimulus plan payout schedule is going to be for the 2008 Tax Rebate. Unfortunately they still have not released an updated payout schedule yet. My source inside the IRS says it should be coming in the next few weeks, so please keep checking back as I will post it as soon as it is public knowledge.

Another item that I have received a bunch of questions on is whether or not we will have to pay taxes on the rebates that we qualify for. The good news is no.  Check out the IRS Frequently Asked Questions Site and at the bottom you will find this:

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

This is definitely great news, because if I was going to have to pay taxes on it I was just going to save it, but now, that Xbox 360 is looking better and better.

Subscribe to my RSS Feed to get the latest updates. You can also see all my posts on the 2008 Tax Rebate Stimulus HERE!

2008 Tax Rebate Stimulus Plan Update

Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!

Here is an update from the IRS Regarding the Tax Rebate Payout Plan:

The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won’t need to do anything else to receive the stimulus payment. For taxpayers who haven’t filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

As soon as I get the stimulus plan payout schedule I will be sure to post it here, so keep checking back. Be sure to see my Other Posts for more detail on the Tax Rebates.

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